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| The Monthly Treasury Average continued heading downhill, while the 10-year Treasury yield fell below five percent.
The MTA came in at 5.0050% for June, the second consecutive month it has fallen, Federal Reserve data showed. The index was off about 2 basis points from May’s level but is still higher than 4.4317% a year earlier. The MTA is used to price adjustable-rate mortgage applications, which the Mortgage Bankers Associations said accounted for about one-fifth of total loan requests in its latest survey. The benchmark for long-term mortgages, the 10-year Treasury note, reportedly yielded 4.99% at today’s close, falling 3 BPS for the day. The calculation of the MTA is derived from the 12-month average of the 1-year Treasury bill’s monthly average, which last month was 4.96%. On Friday, the 1-year T-bill was at 4.91%, Fed data showed. In addition to the 1-year T-bill, ARM indexes include the Cost of Funds Index and the 6-month London Interbank Offered Rate, which reportedly averaged 4.293% in May and 5.3817% in June, respectively. |
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Coco Salazar is an associate editor and staff writer for MortgageDaily.com.e-mail: MortgageWriter@aol.com |
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